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>people should not be living there

How do people afford to move and start new lives when you can't sell your property because it is uninsurable?

perhaps we should not treat systemic social failure as individuals' responsibility to resolve on their own without support of the State

> we should not treat systemic social failure as individuals' responsibility to resolve on their own without support of the State

Nobody is suggesting jailing the irresponsible. But there is no reason they’re entitled to that capital. They took a risk and it was a bad one.